Chicago's future is now: 40 Under 40 list proves it

Over the 22 years Crain's has published its annual 40 Under 40 list, the lineup largely has reflected the city's traditional industries. Over the years, we've had our share of rising young bankers and investors, budding industrialists, rock stars in manufacturing and packaged goods, a smattering of architects and lawyers, and the sons and daughters of longtime business leaders, many of whom had genuine talent or simply were fortunate enough to be born on third base.

This year's class is markedly different.

The 2011 roster includes 18 entrepreneurs, plus three representing the startup investment and incubator scene: Paul Lee of Lightbank, Sam Yagan of Excelerate Labs and Matthew Pritzker, whose investments include HomeMade Pizza Co. In addition, there is the Groupon Inc. corporate development chief, Jason Harinstein, who isn't himself an entrepreneur but always is scouting deals in the startup space.

A handful of these folks, notably Pam Netzky of Wells Street Popcorn and Mr. Yagan, have started more than one enterprise.

Picking the 40 people to watch is not rocket science. We ask our experts: the reporters who, in intensely covering their beats, are watching and listening and looking for the exceptional. We narrow the list and narrow it again. Young executives doing extraordinary things naturally rise to the top in any given year.

What we are seeing in the list is evidence of a long-awaited shift in Chicago business. Make no mistake, we are a startup town. Go ahead—it's OK to say it.

For years, the local and national media have referenced the shift away from Chicago's manufacturing base to a “more diversified economy.'' That it's been hard to pinpoint just what we are good at is both refreshing and disconcerting. What are we if not the brawny Chicago that makes big things? There's comfort in knowing you're good at something.

Within the traditional business and civic clubs, Chicago still seems to be a tale of two cities. Those groups' leaders largely reflect the city's Fortune 100 heritage; few of these under-40, risk-taking entrepreneurs are among them. The new generation has yet to be embraced by—or to embrace—what the older guard represents.

What we have is a new group of people building things, just not necessarily in the big way we've seen in the past. For Chicago to advance as a startup center, it's time to bridge this city's generational gap and leverage the best of the new and old. Both have much to learn from each other.